RBC Bank
 |
|
| Type | Subsidiary |
|---|---|
| Founded | 2 November 1990 Rocky Mount, North Carolina |
| Headquarters | Raleigh, North Carolina [1] |
| Area served | Southeastern United States |
| Parent | Royal Bank of Canada |
| Website | rbcbank.com |
RBC Bank, formerly Centura Banks, is the United States retail banking division of the Royal Bank of Canada. The headquarters for the bank are located in Raleigh, North Carolina. Banking centers and automated teller machines are located throughout the Southeastern United States. The company's largest operations are in North Carolina and Alabama.
On June 19, 2011, PNC Financial Services agreed to buy RBC Bank USA from Royal Bank of Canada for $3.45-billion.[1] The sale of RBC Bank is expected to close in March 2012, subject to receipt of regulatory approval and customary closing conditions. Upon acquisition, all RBC Bank branches will be rebranded as PNC branches and the RBC Bank brand will become dormant.
Contents |
[edit] History
On November 2, 1990, Peoples Bancorp and Planters Corp., of Rocky Mount, North Carolina, merged to form Centura Banks.[2] In June 2001, Centura Banks was acquired by Royal Bank of Canada and rebranded as RBC Centura. RBC announced on January 17, 2008 that it would abandon the "Centura" brand in April 2008 and the U.S. operations would operate as RBC Bank.[citation needed] Over 1000 employees continued to work in Rocky Mount as of 2011, in such areas as information technology and mortgage processing.[3]
On June 19, 2011, PNC Financial Services agreed to purchase RBC bank for $3.45 billion.[1] The purchase price represents a $112 million discount to the book value of the unit. BB&T Bank also made a bid.[4]
[edit] Acquisitions
RBC Centura purchased Tucker Federal Bank parent company Eagle Bancshares in 2002, giving it a substantial customer base in the Atlanta area.[5] The bank merged with Flag Bank, increasing its presence in Georgia. RBC continued to grow in the Southeast after acquiring 39 branches of Birmingham, Alabama-based AmSouth Bank on March 9, 2007. Previously, RBC Centura had no locations in Alabama.
RBC's footprint in Alabama, Georgia, and Florida expanded significantly after its acquisition of Alabama National Bank Corporation (ANB). US approval was given on February 5, 2008. On April 14, 51 branches re-opened as RBC Bank. The remaining branches were re-opened by June 2008. ANB operated in three states through eleven different subsidiaries.
[edit] RBC presence in Raleigh, NC
The building of the RBC Plaza, finished in 2008, was not the first major move by RBC to become a major part of the community in Raleigh, NC. In 2002, RBC purchased the naming rights for the Raleigh Entertainment and Sports Arena, home to the Carolina Hurricanes of the National Hockey League and North Carolina State University basketball. The arena was renamed the RBC Center, with a 20-year lease at a cost of $80 million. In June 2006, the RBC Center was host for the NHL's Stanley Cup Finals, and on June 19, 2006, the Carolina Hurricanes defeated the Edmonton Oilers in the RBC Center to win the Stanley Cup.[citation needed]
In 2011, 500 of 5000 RBC employees worked in Raleigh.[6]
[edit] Controversies
[edit] Dunmore Homes
In November 2007, RBC Centura was involved in the "Dunmore Homes" project in Sacramento, California that stopped all construction on August 8, 2007, due to liquidity issues with the home builder. The company was subsequently sold to a mortgage loan officer for $500 and quickly incorporated in New York. The company filed for bankruptcy in Manhattan. After details of the sale became known to RBC Centura Bank, a major Dunmore Homes creditor, the bank sued on November 7. The company alleged in a lawsuit filed in Fresno County that the sale of all the assets for a mere $500 wasn't adequate and was done to "hinder, delay and defraud the creditors," including RBC.
RBC financed four Dunmore projects from Bakersfield to Yuba City. It loaned Dunmore Homes a total of $105 million and, according to an affidavit by a Dunmore Homes official, is still owed $39 million. As collateral, it has secured claims against those projects. But the company says the value of a Fresno project is less than the outstanding loan balance. Nine major lenders, including RBC, are owed a combined total of $196 million on Dunmore Homes' 26 new-home communities, according to the builder.[7]
[edit] References
- ^ a b Bansal, Paritosh (2011-06-19). "Reuters: PNC to buy RBC unit for $3.45 billion". Pittsburgh Tribune-Review. http://www.pittsburghlive.com/x/pittsburghtrib/business/s_742948.html. Retrieved 2011-06-19.
- ^ "Frequently Asked Questions". RBC Centura Banks, Inc. http://www.rbccentura.com/about/pressroom/Press_FAQ.pdf. Retrieved 2008-04-11.
- ^ Ranii, David; Hagel, Jack (2011-06-20). "Deal expected to bring job losses to Raleigh". News & Observer. http://www.newsobserver.com/2011/06/20/1285941/pnc-likely-buyer-of-rbc-bank.html. Retrieved 2011-06-20.
- ^ http://www.postgazette.com/pg/11169/1154677-28.stm
- ^ Jordan, Meredith (2002-06-03). "RBC Centura Aims High with Eagle Bancshares". Atlanta Business Chronicle. http://www.bizjournals.com/atlanta/stories/2002/06/03/newscolumn3.html. Retrieved 2011-04-19.
- ^ Wolf, Alan M. (2011-06-20). "PNC confirms plan to buy RBC Bank for $3.45 billion". News & Observer. http://www.newsobserver.com/2011/06/20/1286382/pnc-confirms-plan-to-buy-rbc-bank.html. Retrieved 2011-06-20.
- ^ Shaw, Michael (2007-11-30). "Lender cries fraud over Dunmore Homes sale". Sacramento Business Journal. pp. 2. http://sacramento.bizjournals.com/sacramento/stories/2007/12/03/story2.html. Retrieved 2008-04-11.
[edit] External links
|
||||||||||||||||||||
|
|||||||||||||
9%) | Market capitalization: $63.8 billion
|
||||||||
